Huabao International Holdings Ltd. (Hong Kong) has reported a 100% rise in net income for 2006 of HK$567.1 million, compared to HK$283.1 million the previous year. As the cost of sales and raw materials fell in 2006, gross profit margin increased to 69.5% from 47.3%. Huabao is an investment holding company that, through its subsidiaries, produces and sells flavors and fragrances for tobacco, food and household related products. Currently, the companies largest segment is tobacco flavors, and its customers include the top 10 tobacco groups in China that account for 51% of the market share in the country. Huabao has stated that it intends to expand the food flavors business and develop fine fragrances.